There are three reasons why you should not apply for installment credit cards. After reading them, you can decide whether to app

Many people have received calls from banks, inviting cardholders to apply for credit card installment. It was said that there will be various discounts during the event, which made many people excited.min pay However, the editor does not recommend that everyone apply for installment. There are three main reasons. You can decide whether to apply for installment after reading it.

First of all, the installment fee is not cost-effective. When many bank telemarketers sell installment plans,ofw quick cash loan online they will tell you that this business is interest-free and you only need to pay a handling fee every month. It seems that paying a handling fee is more cost-effective than calculating interest on a daily basis, but in fact the handling fee is not low.

We must know that the installment principal will decrease with our monthly repayments, but the monthly handling fee has always been fixed, so the actual interest rate is much higher than the rate seen on the surface.debt consolidation After calculation, the monthly credit card fee The interest rate multiplied by 1.81 is almost the actual interest rate used.

Secondly, if you repay the credit card installment in advance, you still need to pay a lot of handling fees. Many people think that if you pay off your credit card in installments in advance, you don’t have to pay the handling fees if you don’t use the money later. I can only say that you are too naive.

The bank will not manage how long the money is actually used. If you want to repay it in advance, you can pay it back in advance. In addition to paying the remaining principal, remember to pay the unpaid handling fee in one lump sum. If you don't pay the handling fee, you will be considered overdue. However, there are some banks that do not charge handling fees for the remaining period, but will charge a penalty for the remaining principal.

Finally, credit card installment may affect your credit card limit increase. Some telemarketers will say when promoting installment plans that installment plans can help increase credit card limits. However, many people find after completing the application that the credit card limit limit has not been increased since it was already time to increase the limit. The main reason for this may be that the installment plan is locked in a dark room, and the limit will only be increased if all the installment installments are paid off.